Remember the NYAG wording is going to biased in their favor.

Reading between the lines - there was a period in the past where Tether was not fully backed. If Tether was still, as of today, not fully backed, would NYAG conclude this case?

I suspect the AG thought it had a bigger case involving ongoing fraud but settled as it could not find evidence of any ongoing false claims.

While biased in Tether's favor, worth a read: https://tether.to/en/stress-tests-resiliency-and-bank-runs/